I have mentioned many times how countries seeking to inspire people to have more children mostly fails. They offer too little to make a difference, their approaches are nowhere near bold enough. And too often they focus on short-term bonuses and benefits, rather than long-term. Free child-care is one of the best policies.
Hungary has already increased their fertility rate in recent times, but they are still nowhere near the magical figure of 2.1. So now they have put in the biggest effort of any country so far, costing an incredible 5% and 6% of Hungary’s GDP.
The measures include:
- Tax breaks for mothers with 4+ children
- Student loan forgiveness for families with 3+ children
- Housing subsidies for newly wed couples
- Car purchase subsidies for larger families
It will be interesting to see the results. My guess is that they’ll get to 1.8 at best. For most countries population decline is a losing battle, and definitely more so if you are not keen on immigration.